Philia Corporation (Itabashi Ward, Tokyo; Representative Director: Naoyuki Koshikawa) has released a case study of purchasing properties that were difficult to sell due to reasons such as being "illegally constructed."

▶ https://philia-co.com/purchase/nishitokyoshishibakubocho-ihankenchiku-kaitori/

We introduce this as an example of a new approach to address issues such as the growing problem of vacant houses and complex rights adjustments in recent years.

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【Background】

According to a survey by the Ministry of Internal Affairs and Communications, the number of vacant houses in Japan is increasing year by year, and the management and disposal of vacant houses have become social issues.

Currently, in Tokyo and the three surrounding prefectures, real estate with issues such as "unbuildable," "co-owned shares," and "nagaya/ren-to" often faces difficulties in selling or disposal, with many cases being rejected by major real estate agencies due to the inability to obtain housing loans or the complexity of rights adjustments.

【Case Summary】

This was a case where sales were stalled because financial institutions could not provide loans due to reasons such as "illegally constructed" properties exceeding the floor area ratio and building coverage ratio. It was determined that selling it as a general residence would be difficult, so it was evaluated and purchased as a "rental property" with the intention of renovation.

Illegally constructed property in Shibakubocho, Nishitokyo City

【Property Overview】

Location: Shibakubocho, Nishitokyo City, Tokyo

Access: 15 minutes on foot from the nearest station

Property Type: Used detached house (small lot house)

Title: Ownership Current Status: Vacant

Special Notes: Exceeds building coverage ratio and floor area ratio (treated as illegally constructed)

Transaction Type: Purchased by our company

【Background and Challenges of Consultation】

The seller had been trying to sell the property for a long time, but because it was an illegally constructed building that exceeded the floor area ratio and building coverage ratio, purchase offers would repeatedly fall through because financial institutions could not approve loans (housing loans) even if potential buyers appeared. It was also about a 15-minute walk from the station, and the land was small, making it difficult to expect demand as a general residential property (own home). The seller consulted us in a desperate situation.

Shibakubocho, Nishitokyo City

【Our Response and Solution】

Upon conducting an on-site inspection, we determined that it would indeed be difficult to sell to the general public using housing loans. However, the building itself was sufficiently usable with renovations, so we shifted our perspective from "residential use" to "investment use (rental property)." We proposed a reliable cash-out solution by directly purchasing the property and increasing its value through renovations, eliminating the risk of cancellation due to loan contingencies.

【From the Representative】

For "illegally constructed" properties like this one, major real estate agencies often refuse to handle them from a compliance perspective, or contracts fail to materialize because buyers cannot secure financing. In this case, we were able to purchase it without issue because we had a strategy to renovate it after purchase, find tenants, and then resell it as a "yield property (owner change)." We evaluate properties that are difficult to finance, such as illegal constructions and properties that cannot be rebuilt, from our unique perspective.

Potential buyers appear, but housing loan applications are rejected

【Future Outlook】

Philia Corporation will strengthen its provision of realistic solutions based on over 1,000 on-site experiences and highly transparent appraisals utilizing IT, in response to the worsening problem of vacant houses.

In the future, we aim to deepen collaboration with administrative bodies and professionals to regenerate "problem properties" that are difficult to utilize into "valuable assets" that contribute to regional safety and security. We aim to build an infrastructure for sound real estate circulation that does not leave a negative legacy for future generations.

▶About Philia Corporation

Philia Corporation is a real estate company specializing in the purchase and resale of "vacant houses" and "problem properties" that are generally difficult to sell, such as properties that cannot be rebuilt, co-owned shares, and nagaya/ren-to style buildings, primarily in the Tokyo, Saitama, Chiba, and Kanagawa areas. With over 1,000 consultations and a representative who holds the qualification of "Vacant House Advisor," we carefully unravel complex ownership structures and legal restrictions, and find new value in properties that other companies have rejected.

▶Company Overview

Representative: Naoyuki Koshikawa, Representative Director

Business Activities: Real estate sales and regeneration

Location: 1st Floor, Maison NOWROAD, 1-25-17 Akatsuka Shinmachi, Itabashi Ward, Tokyo 175-0093

URL: https://philia-co.com/

▶Contact

Public Relations: Katsuno

[email protected]

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  • Source: PR TIMES
  • Category: 事例紹介